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Direct to Consumer beer commerce is getting more popular, but what's it mean?

Just Tapped

Beer tourism. Beer travel. Beercationing. Whatever you call it, we love to visit new places and experience the local beer when we get there. Then, apparently, we want to bring that experience back home into our own living rooms. That principle, in part, is behind this week's top story. It's good to know that the modern beer drinker still has a sense of adventure and exploration. Either that or it's just a nagging sense of FOMO. Read on.

Nearly 4 out of 5 craft beer drinkers would spend more if...

Sovos ShipCompliant and the Brewers Association just released a report about the beer-buying public’s interest in Direct-to-Consumer (DtC) beer shipping. That is, buying beer directly from the brewery and having it shipped to their homes. The report provides an in-depth analysis of a consumer poll along with an economist’s review of the DtC beer shipping market, but what does it tell us about the modern beer consumer?

People dig it. The poll showed that 79% of “regular craft beer drinkers” would purchase more craft beer if they were able to have it shipped directly to their homes. 72% say they would spend $50 or more per month on DtC beer if they could. And 51% say they would spend $100 or more per month. The popularity is driven by a desire to buy beer from out-of-state breweries that are otherwise unavailable locally.

“The DtC shipping market holds a great deal of interest for regular craft beer drinkers. We’ve seen a year-over-year increase in demand for trying beer shipped from out-of-state breweries. Results further suggest that breweries could experience positive word-of-mouth advertising from consumers, leading to increased sales via DtC.”

Larry Cormier, vice president and general manager, Sovos ShipCompliant.

Currently, this kind of interstate beer commerce is only legal in 11 states plus the District of Columbia. The poll revealed that a whopping 88% of respondents say there should be greater legal access to DtC beer shipping. Many small producers (craft breweries) tend to agree with the respondents. Large beer distributors tend to oppose efforts to legalize DtC beer commerce and want to maintain the three-tier system's status quo, which is not surprising.

Craft beer consumers still have an adventurous side. They still want to explore. They still want to attain the unattainable. A lot of breweries are not in a position—economically or logistically—to engage in DtC interstate commerce. We'd suggest an interstate collaboration beer brewed with an out-of-state partner. Seems doable. Worth a shot.

Some bar owners may feel that DtC provides another opportunity for the consumer to stay home. In the event that a bar does get its hands on something interesting and not regularly available, we'd suggest making a lot of noise to make sure the wayfaring, adventure-seeking beer consumers know.

 “In sum, the combination of consumer demand—both for craft beer generally and direct shipping more specifically—and the realities of tightening distribution opportunities make direct shipping a sensible route to market for many American small breweries.”

Bart Watson, chief economist, Brewers Association.

Some of the 39 states that do not allow it are considering, or have recently considered, legislation that would legalize DtC beer commerce. It’s an uphill battle against some deep pockets. One thing is certain; 88% of the beer-drinking public wants it. Read the complete report here.

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Tales From the Taproom

"When we opened our new taproom and brewery, some of the regulars who hung out at the bar in our original location came by to check it out. Some of them said that [our flagship IPA] tasted different. That it didn't taste the same now that it was being brewed on the new, bigger system. I just nodded and said I'd talk to someone about it. They were drinking beer that was brewed at the original location, kegged, and then driven five miles up the road to the new location, the exact same beer, but I just nodded politely." -Beaux

This week's Taster Tray was composed by Kendall Jones.